You claim the solar tax credit by filing IRS Form 5695 with your federal tax return, allowing you to deduct 30% of your solar installation costs directly from your tax bill. . Use these steps for claiming a residential clean energy tax credits. Make sure the property on which you are installing the energy property is eligible: Make sure you are installing qualified energy property: Used (previously owned) clean energy property is not eligible. According to a 2023 industry report, over 20% of eligible homeowners miss out on this valuable credit or file for it. . The solar tax credit allows homeowners to subtract 30 percent of the cost of installing solar heating, electricity generation, and other solar home products from their federal taxes. According to EnergySage, an alternative energy marketplace, it costs about $28,000 to install a typical system. It does not constitute professional tax advice or other professional financial guidance.
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